Raw Material Producers are usually big conglomerates that operate extensive exploration projects in search of these scarce natural resources. Mining projects are expensive to operate (high labour & exploration cost) and these operations are conducted in the most risky environments, such as offshore drilling for oil below the seabeds, or even coal mining 300ft below the land surface.
Popular examples include (but are not limited to): – Mining and Quarrying – Agriculture and Animal production – Oil/petroleum extraction
Why Is Insurance Crucial For Raw Material Producers?
Due to the geographical sediment of these natural resources, crude oil emerges as the top commodity with a world production value of $2.4 trillion (2014), followed by gas ($715b) and cement ($445b).
Today, Chinese companies have dominated the supply chain on raw materials, accounting for almost 70% of global supply due to the increasing demands for natural resources by developing nations, a result of globalisation.
Some of the world largest Raw Material Producers today are Multi-national companies like BHP (market cap of $87.86bn / 2017) / Rio Tinto ($73.79bn) / China Shenhua Energy ($62.4bn) / Glencore Xstrata ($51.37bn), just to name a few
BHP for example, has an estimated turnover of US$43.638bn and employs 62,000 employees worldwide. With all that amount of sales turnover & employees, it is every organisation’s responsibility to ensure that their greatest assets are protected at all times.
What Insurance Do Raw Materials Producers Need?
Mining & exploration works is a risky business, evidenced by high numbers of injuries/ casualties whom have operated in this industry. Miners in underground mines are at a risk of developing respiratory related issues caused by ventilation hazards and exposure to harmful substances. Deep sea oil rigging has a high probability of fire & spillage incidents, potentially can cause death in extreme situations
As these industries relies heavily on human labour, Work Injury Compensation Insurance (WIC) is a must have for all raw material producers. Cave-ins accidents is the most dangerous for workers in underground mines, while workers in industrial plants may face risk of worksite explosions if safety measures are poorly managed.
Occupational hazard possibly is ranked the highest for workers, given the job nature. Skilled employees operating in this industry needs to work on sophisticated industrial equipment & machinery, and lapses in precautionary measures could result in fatal accidents (caused by worksite explosions/ landslides/ cave-ins) or even cause environmental damages (oil spills, unlawful discharge of industrial waste)
Top Recommended Insurance For Raw Materials Producers